A new report has found differential pricing is used by the majority of insurance companies.
Differential pricing is when two people who are of the same level of risk are charged different amounts based on what the company thinks they will pay.
The Central Bank has raised concerns about the practice which it says is being implemented through various techniques.
Its report says "Firms have a responsibility to understand fully the impact of pricing practices on their customers. Failure to recognise and / or acknowledge the practice of price differentiation raises significant concerns about a firm’s ability to assess this impact."
The review also states there is insufficient evidence of a customer-focused culture in respect of pricing decisions and practices.
Sinn Fein says the findings confirm the insurance industry uses pricing methods that punish loyal customers and harm vulnerable and low-income groups.
Deputy Pearse Doherty says data is collected from people's social media posts to feed into this practice:
"Some firms also reportedly use the information provided by web analytics tools and social media listening tools for analysis of user behavior and for pricing and underwriting purposes." - European Insurance and occupational Authority Report #EndTheInsuranceRipOff #DualPricing
— Pearse Doherty (@PearseDoherty) September 9, 2020
